By Arnaldo Galvao and Lucia Kassai – Dec 15, 2011 4:38 PM GMT
Royal Dutch Shell Plc (RDSA) and Cosan Industria & Comercio SAs joint venture in Brazil has reached a preliminary accord to sell its jet-fuel unit to BP Plc, the nations antitrust regulator said today.
The venture, called Raizen, was granted an additional five days to present the agreement to the regulator before being fined, Olavo Chinaglia, interim president of the agency, said at a meeting in Brasilia today. Cade, as the regulator is known, ordered the sale after Shell and Cosan combined some assets in Brazil, including service stations and the jet-fuel unit that Cosan had bought from Exxon Mobil Corp. (XOM)
Failure to carry out Cades decision means the operation will have to be reverted with a return of assets to Cosan, said Chinaglia. This would affects the assessment of the joint venture formed between Shell and Cosan.
A final ruling on the entire joint venture hasnt been scheduled yet, Cades attorney Gilvandro Araujo said. Raizen is the worlds biggest processor of sugar-cane into sweetener and ethanol.
To contact the reporters on this story: Arnaldo Galvao in Brasilia Newsroom at [email protected]; Lucia Kassai in Sao Paulo at [email protected]
To contact the editor responsible for this story: Carlos Caminada at [email protected]
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